6. The Carlberg Company has two manufacturing departments, assembly and painting

Question

6. The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,000 units during November. The following production activity unit and cost information refers to the assembly department’s November production activities. Assembly Department Units Percent of Direct Materials Added Percent of Conversion Added Beginning work in process 2,000 60 % 40 % Units transferred out 9,000 100 % 100 % Ending work in process 3,000 80 % 30 % Beginning work in process inventory—Assembly dept $ 1,581 (includes $996 for direct materials and $585 for conversion) Costs added during the month: Direct materials $ 10,404 Conversion $ 12,285 Required: Prepare the November 30 journal entry to record the transfer of units (and costs) from the assembly department to the painting department. Use the weighted-average method.

Explanation / Answer

Solution:

Computation of Equivalent unit of Production - Weighted Average - Assembly Department Particulars Physical Units Material Conversion Unit completed & Transferred out 9000 9000 9000 Closing WIP: 3000 Material (80%) 2400 Conversion (30%) 900 Equivalent units of production 12000 11400 9900

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